Tax breaks for second homeowners should be scrapped and the money ploughed into tackling the UK's housing crisis, according to a leading charity.

Councils can currently reduce council tax for second homeowners by up to 50%, an option offered by one in five local authorities. Four in five offer the minimum discount of 10%.

Taking Stock, a report by Shelter, claims that ending the discount for the UK's 252,000 second homes would raise up to £42m a year. Second home ownership has grown dramatically since the 1990s, particularly in rural and coastal areas such as Cornwall, Norfolk and Cumbria, where some claim it pushes up house prices, making property unaffordable for local people.

"The council tax discount is effectively a tax break for people with second homes which often lie empty for large parts of the year," said Shelter's chief executive, Campbell Robb. "Enabling councils to charge the full rate of council tax, or higher, would mean they could raise vital revenue that could be used to deliver affordable housing for local people."

The report also proposes that councils are given powers to set council tax higher than the standard rate for properties that are rarely in use.

Shelter's call to abolish tax breaks for second homes has received enthusiastic support from some MPs. "We shouldn't be subsidising the richer people on the council tax tree," said Tim Farron, Lib Dem spokesman on rural affairs. "Those people who can afford to have a second home should pay the same amount of tax."

The call may also strike a chord with the government. Business secretary Vince Cable recently floated the idea of a "mansion tax" on properties valued above a certain amount.